This is the commonly assumed algorithm for selecting a canonical form (dictionary form) of a lujvo. It was created by Bob and Nora Lechevalier in 1989, and is printed in section 4.12 in The Book. The following is a mostly verbatim quotation:
This score is calculated for all possible forms of the lujvo, and the one with the lowest score is selected as the canonical form. The algorithm has no provision for ties, but this is rare, given the large amounts of coefficients that must be factored in.
This algorithm was written on the basis of the personal tastes of its authors (which appears to be quite compatible to the tastes of the rest of the Lojban community). It prefers short words over long ones, and vowels over consonant clusters. It also ranks the different rafsi forms according to which of them the authors find more pleasing.